Several options

There are several answers to this question.

To take the right decision, it is advisable to first identify which measures offer the best and most lucrative opportunities. The company, the products as well as current and prospective sales opportunities should be considered, analysed and evaluated in detail. In addition to typical questions such as: "What is the market position?" "What are the expectations and perspectives?", it is equally important to recognise how customer requests and legal requirements have developed. The individual measures and investments that can be implemented to align the product portfolio with product demand, to upgrade the production plant and to continue to produce successfully in a future-proof manner also depend on the production factors and resources. These include the condition of the plant, the production site, the human resources and the capital available for modernisation measures.

The market sets the pace

An increase in plant capacity is an option in order to produce in line with the market when the demand is likely to be high – quite a typical decision to "grow with the market". Another option for maintaining marketability is to diversify by producing additional products. Block production plants are often expanded to include panel production, further block dimensions or densities, or additional products, like. e.g. lintels. 

Retrofitting with intelligent control and automation modules brings some old plants up to date and makes them fit for the future. At the same time, these measures reduce production costs and enable the producer to meet the increasing demands for ecological standards and environmentally friendly production.

A lot of positive effects are the result: Due to new technical features, the product quality is optimised and rejection rates minimised. A cost-efficient production process ensures competitive sales prices. A production process respecting the environment, considerably contributes to meet not only the social responsibility, but enhances the positive image of the brand. Additional competitive advantages are thus achieved.

Radical overall solution

Some plant operators even decide to make a "sharp cut", like H+H Celcon, dismantling the old plant and building a completely new one. Time is of essence in such cases, as a producer usually cannot afford a long-term production stop due to restructuring measures. Thorough preparation, tight planning and the corresponding speedy implementation are crucial to continue serving the market seamlessly. In case of the H+H Celcon project it took Wehrhahn 90 days from dismantling of the existing plant until the new plant reached full production. 

Small-scale solution with big effect

But it doesn't always have to be the big solution. In the course of improving product quality, targeted smaller modernisation and optimisation measures can often have a big impact. State-of-the-art equipment of the current generation can contribute to a more rational process and to perfecting product quality. Replacing an aging machine or even just installing a few new features is often a quick solution with a manageable investment volume.

A second leg to stand on?

More and more producers who have achieved a stable market position invest in a second plant. Wehrhahn customer Teplit operates two plants near Ekaterinburg, Russia. Both plants have been producing high quality autoclaved aerated concrete for almost 20 years. The major modernisation process started in 2018, is going through several steps and is scheduled to last until 2023. To this end, Teplit is currently expanding its market position even further.

Read here a detailed report about the Teplit plant modernisation in the Wehrhahn Company Channel. Simply scan the QR code.

https://www.aac-worldwide.com/channels/wehrhahn/article/continuous-modernisation-as-basis-for-market-leadership-1447

Individual solution and competent partners

All building material producers recognize the changing times again and again. Every plant is different, and so is every market. Deciding which approach is best to improve competitiveness is not always easy. This is where Wehrhahn's strength as a plant manufacturer and advisor comes into play. Due to the high precision in individual machine construction, the continuous optimisation of the technology, the production processes as well as the comprehensive expertise and service quality, Wehrhahn is an ideal partner to continuously accompany this process of change. The first-class product quality achieved on Wehrhahn plants and maintained over the years consistently serves the market even after a long-term plant life and is a guarantee for future-proof building material production. Market forecasts for building material sales remain positive, markets continue to develop. With a solid basic plant technology, modernisation measures from time to time are therefore not only manageable, but worthwhile investments to considerably enhance a plant and secure the future market position.